UWL INVESTOR PRESENTATION 1 BUSINESS HIGHLIGHTS FY19 (H2) - - PowerPoint PPT Presentation

UWL INVESTOR PRESENTATION

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BUSINESS HIGHLIGHTS FY19 (H2)

Transformation of Uniti Wireless Limited to Uniti Group Limited commenced Listed on ASX, raising $13.2m (excluding costs) Acquired FuzeNet at $10.7m (excluding costs) for less than 3x EBITDA Rationalised existing wireless business and management Expanded management team – Vaughan Bowen and Darryl Inns added Earnings accretive acquisitions of Pivit, Fone Dynamics and Call Dynamics Exceeded prospectus pro forma forecast EBITDA of $2m Now trading EBITDA positive. Exit FY19 run rate $6m Now trading operating cash flow positive after CapEx

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BUSINESS HIGHLIGHTS FY19 (H2)

Substantial cash reserves ($19m) and minimal debt ($2.5m) Improved governance on expenditure and cash payback rules All acquisitions have met earnings accretion expectations Strong board and management team bolstered by acquisitions Announced acquisition of LBNCo which is transformational Committed market support evidenced in June placement and LBNCo funding LBNCo significantly earnings accretive ($10M+ EBITDA(f) in FY20) and future growth contributor Strong pipeline of accretive earnings acquisitions significant cash reserves and debt capability

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Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition

FINANCIAL FINANCIAL OVE OVERVIEW RVIEW

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Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition

PROFIT & LOSS PROFIT & LOSS

Note 1: Statutory accounts, as per the Annual Report released 30 August 2019 Note 2: Adjustments made to the 2019 statutory accounts including: 1) Proforma FuzeNet accounts, to include Jul-18 to Jan-19 profit & loss, 2) less June 19 results for Fone Dynamics and Call Dynamics acquisitions, 3) less June 19 contribution from the Pivit customer acquisition, 4) add back Share Based Payment expenses, 5) add back IPO and Acquisition costs and 6) add back restructuring provision Note 3: Uniti proforma accounts, after adjusting for the proforma adjustments detailed in note 2, above Note 4: Uniti proforma guidance contained with the prospectus dated 16 January 2019 Note 5: Uniti June run rate is the normalized June profit & loss, annualised

Uniti Statutory(1) Uniti Statutory(1) Adjustments(2) Uniti Proforma(3) Uniti Prospectus Guidance(4) Uniti June run rate(5) FY2018 FY2019 FY2019 FY2019 FY2019 Revenue $4,095 $14,336 $9,041 $23,377 $23,067 $31,584 Gross Margin $2,754 $7,717 $2,864 $10,581 $10,283 $15,756 Gross Margin % 67.3% 53.8% 45.3% 44.6% 49.9% Remuneration ($2,906) ($9,297) $2,686 ($6,611) ($7,008) Other SGA ($1,760) ($3,919) $1,998 ($1,921) ($2,748) EBITDA ($1,912) ($5,499) $7,548 $2,049 $2,052 $6,000 EBITDA %

• 46.7%
• 38.4%

8.8% 8.9% 19.0% Depn & Amortisation ($2,064) ($5,753) ($5,753) Impairment (ROUA) $0 ($1,407) ($1,407) Interest & Tax ($825) ($872) ($872) NPAT ($4,801) ($13,531) $7,548 ($5,983) ($000’s) 5

BALANC BALANCE E SHEE SHEET

Balance sheet includes businesses acquired during the financial year Cash at bank has increased due to the business now cash positive Cash at bank includes $14.7m (net of fees) from placement on 5 June 2019 Net current tangible assets at $17.3m, strengthening position from negative $12k Deferred settlement includes payments outstanding for Fone Dynamics ($8.4m) and Call Dynamics ($630k) Deferred consideration consists of $630k to be paid in cash, and $8.4m to be settled in issue of shares Borrowings include loan from SA Govt of $2.5m Intangible assets include goodwill of $20.5m and Right of Use assets of $4.9m Intangible liabilities include ROUL – lease commitments for rental

• f tower locations

FY2019 FY2018 Cash at bank $19,131 $847 Trade recievables $1,507 $619 Other current assets $1,707 $222 Trade & other payables ($4,905) ($1,325) Other current liabilities ($175) ($375) Net current tangible assets $17,265 ($12) Property, plant & equipment $3,589 $5,082 Deferred settlement & borrowings ($12,990) ($209) Net tangible assets $7,864 $4,861 Intangible Assets $25,384 $8,108 Intangible liabilities ($7,378) ($9,635) Net assets $25,870 $3,334 Equity $25,870 $3,334 ($000’s) Uniti Group Ltd 6

CASH CASH FLOW FLOW

The cash flow shows the split of the first half cash flow (1H), with the second half (2H) 2H shows the operating cash flow improved to a positive $2m, up from negative $1.8m 2H receipts and payments includes FuzeNet, acquired on 1 February 2019. CAPEX has been reduced to a lower level in the 2H, resulting in a positive FCF of $1.7m Investing activities includes the FuzeNet acquisition Financing activities includes the IPO raise, as well as the placement ($14.7m – net of fees) Cash balance increased by $18.3m, to a closing balance of $19.1m

Receipts from customers $3,229 $11,804 $15,033 $4,361 Payments to suppliers and employees ($5,632) ($10,294) ($15,926) ($5,586) Finance costs and Other $619 $528 $1,147 ($825) Operating cash flows ($1,784) $2,038 $254 $254 ($2,050) Capex ($1,432) ($384) ($1,816) ($3,887) Free Cash Flow ($3,216) $1,654 ($1,562) ($5,937) Investing activities ($1,618) ($9,027) ($10,645) $0 Financing activities $5,008 $25,483 $30,491 $6,282 Net increase / (decrease) in cash $174 $174 $18,110 $18,284 $345 $345 Opening balance $847 $847 $1,021 $847 $847 $502 $502 Closing balance $1,021 $19,131 $19,131 $847 $847 ($000’s) 1H 1H 2H 2H FY2019 FY2018

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Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition

PROFIT & LOSS ( PROFIT & LOSS (Proforma) Proforma)

Uniti. (Proforma) Uniti. (Proforma) Uniti (Proforma) LBN Co Combined Uniti Forecast LBN Co Forecast Combined FY2017 FY2018 FY2019 FY2019 FY2019 FY2020 FY2020 FY2020 Revenue $14,680 $18,762 $23,377 $17,368 $40,745 $37,949 $19,424 $57,373 Gross Margin $5,475 $8,550 $10,581 $14,135 $24,716 $18,806 $15,997 $34,803 Gross Margin % 37.3% 45.6% 45.3% 81.4% 60.7% 49.6% 82.4% 60.7% Remuneration ($3,098) ($4,488) ($6,611) ($4,918) ($11,529) ($8,964) ($4,734) ($13,698) Other SGA ($1,558) ($2,698) ($1,921) ($996) ($2,917) ($3,342) ($1,155) ($4,497) EBITDA $819 $819 $1,364 $2,049 $8,221 $10,270 $6,500 $10,108 $16,608 EBITDA % 5.6% 7.3% 8.8% 47.3% 25.2% 17.1% 52.0% 28.9% ($000’s)

Note 1: Uniti (Proforma) accounts for FY17, FY18 & FY19 includes full year results for FuzeNet (acquired 1 February 2019) Note 2: The results are prepared to an underlying basis, excluding non-operating costs for the Uniti and LBN Co businesses Note 3: LBN Co FY19 & FY20 results have been reduced in line with due diligence results, and are lower than the budget produced by LBN Co management Note 4: LBN Co FY20 results do not include any contribution from 3 acquistions, just acquired by LBN Co. Note 5: The combined results are an addition of the 2 businesses, and do allow for any intercompany eliminations on consolidation

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Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition

BALANC BALANCE E SHEE SHEET T (Profor (Proforma) ma)

Proforma Balance sheet

($000’s) UWL LBN

Adjustments

Proforma Cash 19,131 3,084 5,141 27,356 Debtors 1,507 2,908 4,415 Other 1,707 681 2,388 Fixed Assets 3,589 31,407 34,996 Intangibles 25,384 5,475 65,394 96,253 TOTAL ASSETS 51,318 43,555 70,535 165,408 Creditors 4,668 2,631 7,299 Other current liabilities 8,164 376 8,540 Bank Loans 2,460 15,665

• 15,665

2,460 Non-current liabilities 10,156 1,780 11,936 TOTAL LIABILITIES 25,448 20,452

• 15,665

30,235 NET ASSETS 25,870 23,103 86,200 135,173 Equity Issued capital 46,691 24,000 86,200 156,891 Reserves 1,283 151 1,434 Retained profits

• 22,104
• 1,048
• 23,152

TOTAL equity 25,870 23,103 86,200 135,173 2019 2019

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Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition

THE THE FUTU FUTURE RE

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STRATE STRATEGIC GIC GROWTH AGENDA: T GROWTH AGENDA: THREE HREE PILLA PILLARS RS

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Wireless Networks Specialist Services

▪

Wireless infrastructure network

• wner/operator and broadband

provider with proven high speed performance

▪

Alternative solution to NBN

▪

Connecting residential, business and enterprise customer premises through Uniti’s ‘last mile’ network Fon

• ne Dyna

ynamics cs

▪

Focusing on modern inbound voice and business-grade SMS services differentiated by quality data and call tracking analytics Call all Dyna ynamics

▪

Focusing on modern inbound voice services with limited call tracking solutions

Broadband/Fibre

Fuz Fuzenet

▪

Enabler of LBNCo’s largest retail service provider

▪

Portfolio of voice and data products LBNC NCo

▪

Fibre & wireless infrastructure network

• wner/operator and broadband

provider with proven high speed performance

▪

Alternative solution to NBN

▪

Connecting residential, business and enterprise customer premises through ‘last mile’ network

Specialist services that enable full-service teclo Aggressively pursue niche and emerging markets where minimal barriers to entry and competition

AMPLIFIED AMPLIFIED GRO GROWTH WTH STR STRATE ATEGY GY

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LBNCo LBNCo ACQUISITION ACQUISITION: KEY ST KEY STATS ATS

Ne Networ

• rk hi

high ghlig ights Na Natio ional l foo

• otp

tprin int

418 estates / buildings contracted nationwide >65k premises / lots passed 21,424 active services (delivered via 16 active RSP’s) <50% utilisation – active services to connected dwellings Current contracted pipeline – 22k lots under construction 72% using FTTP technology

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Tot

• tal po

port rts by y tech echnol

• log
• gy

Fi Fina nancia ial l summary ry

Revenue breakdown FY19 Revenue* ($m) EBITDA* ($m)

$15.2

$2.3 RSP's Developers 15.3 17.4 19.4 6.4 8.2 10.1

Estates: 56 Lots: 4,827 Active: 1,729 Estates: 275 Lots: 21,190 Active: 9,264 Estates: 17 Lots: 4,337 Active: 3,105 Estates: 67 Lots: 34,965 Active: 7,157 Estates: 3 Lots: 324 Active: 169

* LBNCo FY20 Revenue and EBITDA is before the earnings contribution to LBNCo from three recent acquisitions of private networks or businesses prior to acquisition by UWL.

72.0% 19.4% 5.0% 3.6% FTTP VDSL Ethernet HFC FY19 FY20(f) FY18 FY19 FY20(f) FY18

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• All apartments directly connected with

fibre cables

• Use existing ceiling space – minimising

install costs

• Delivers super high speeds (up to 1000

Mbps)

Source ce fibre re bac ackhaul from rom al all Na National Fi Fibre Provide viders (e.g e.g. . Tel elstra, Optus or Vocus) into the e Building Bas asement from LBNCo Dat Data Cen entre LBNCo installs fibre infrastructu cture from the bas asement into eac each ap apar artment

Able to Deliver super high speeds (up to 1000 Mbps) with current 250Mbps residential product available vs 100 Mbps NBN product to Consumers. LBNCo builds to greenfield broadacre, MDU’s and buildings with a brownfield capability LBNCo designs and installs an NBN-compliant Gigabit Passive Optical Network - latest in Fibre to the Premise (FTTP) technology with fibre to each residence/business LBNCo optimise network design and able to deliver wireless solutions and build to brownfields residences and businesses to expand footprint and addressable market

LBNCo: FIBRE TO THE PREMISES PRODUCT

FTTP is LBNCo’s premium product, offering faster speeds than NBN today

LBNCo LBNCo: HI : HIGH GH MARGIN MARGIN ANNU ANNUITY INFRASTRU ITY INFRASTRUCTU CTURE RE

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Delivers UWL market entry as a fibre infrastructure network owner and operator Provides platform for UWL to continue to invest in fibre infrastructure throughout Australia Fibre infrastructure network ownership and operations can be selectively expanded to brownfields consumer, corporate and enterprise Ability to merge fibre and wireless infrastructure networks for future deployments. Potential for multi technology offer in same buildings and regions, both brownfield and greenfield New structure adheres to regulatory requirements The LBNCo acquisition is also defensive / protective, should Telecommunications Reform Package be passed Allows future synergistic acquisition opportunities of similar fibre businesses to capitalise on invested capital, operations and systems Long term annuity earnings with economics of infrastructure ownership in limited competitive circumstances, enhanced by UWL’s wireless capability Potential 5G cell site and backhaul provider from several hundred on-net buildings

The acquisition of LBNCo establishes UWL as a fibre infrastructure network owner and operator

FUTURE: FUTURE: WI WIRELESS RELESS

MVNO Ne Network rk Mobile connectivity solutions providing wireless access network using MVNO Capability to deploy small cell wireless network using 4G & 5G technology Focus on technology as data solution rather than typical cellular mobile solution Will have capability to provide consumer mobile products

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FUTURE: WIRELESS & FIBRE - BROADACRE

Broadacre by fib fibre, wir ireless ss or

• r mobile

Utilise fibre network for high capacity broadband and connectivity 4G & 5G cellular technology as overlay on fibre network PtP & PtMP technology deployed where it is economically viable in identified addressable markets

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Captive portal model or pay per use Can operate via both fixed fibre and wireless networks Provide simple connectivity solutions for various multi-dwelling accommodation settings Focus on customer acquisition with ability to utilise building as wireless site

FUT FUTURE URE: WIRELESS : WIRELESS & FI & FIBRE BRE - MDU MDU

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FUT FUTURE URE: SPECIALI : SPECIALIST T PRODUCTS PRODUCTS

CLOUD & & SDN Opportunities to bundle cloud & SDN services with connectivity solutions to build business & enterprise segments NE NEW MARKETS VIA ACQUISITION Build value for new & existing customers Existing niche products with broad application and market appeal CROSS SS SEL ELLING OPP PPORTUNITY Increase group ARPU and lifetime value

• f customer

One-stop communications expert creating a seamless customer experience 19

QUE QUESTI STIONS? ONS?

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APPENDI APPENDICES CES

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SHARE SHARE REGISTE REGISTER R SNAPSHOT SNAPSHOT

Cur Current Cap Capit ital l str tructure Cur Current sha harehol

• lder br

breakdown

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Es Escrowed sha hares

Cornish, 11% Institutional, 14% Directors and Management, 7% Retail, 68%

Shares outstanding (as at 30 August 2019) 159.64m Options (at various prices) 14.05m Existing cash as at 30 June 2019 $19.1m Director and Executive shareholding Graeme Barclay (Chairman) 2.9m Vaughan Bowen (Executive Director) 4.5m Michael Simmons (CEO/MD) 3.7m Es Escr crow type pe Relea lease se da date Shar Shares s escr scrowed Voluntary 30 August 2019 13,622,506 ASX 07 September 2019 2,871,429 ASX Voluntary 21 November 2019 30 November 2019 1,800,000 489,050 ASX Voluntary 07 December 2019 18 January 2020 471,429 6,278,030 ASX 06 February 2020 703,135 Voluntary Voluntary 13 February 2020 31 May 2020 10,287,342 489,050 ASX 13 February 2021 24,643,028

Cap Capit ital l str tructure – po post t LBN LBN Co Co ac acquisit ition

Shares outstanding (30 June 2019) 147.03m Share issue (Fone Dynamics vendors) 12.61m Shar hares outs

• utstanding (30 Au

Augu gust 2019) 159.64m Institutional Placement 15.58m Non-renounceable Entitlement Offer 67.92m Share issue (LBN Co vendors) 8.33m Sh Shares out

• utstanding – pos

post LBN Co

• acquisition

25 251.46m

ESO ESOP P P PLAN E LAN EXPEN XPENSE SE

ESO SOP PLA LAN EXPE EXPENSE | | ACTU TUAL & & FOR ORECAST – NO NON CASH CASH

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($000 ($000's) FY19 FY20 FY21 FY22 TOTAL Non-Executive Directors $ 1,142 $ 173 $ 67 $

• $1,382

Key Management Personnel $ 2,035 $ 1,853 $ 508 $ 52 $4,448 Founders $ 338 $

• $
• $
• $338

$338 TOTAL $ 3,514 $2,026 $575 $575 $52 $52 $6,168